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Editorial

City takes right road

Oversight necessary for modern livery-car options

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Monday March 31, 2014 5:28 AM

It’s a good sign for Columbus that two new car-service companies see the city, with its healthy
economy, as a good market for their quickly growing businesses.

It’s also good for residents to have more transportation options and competition.

After initially being caught off-guard by their launch, Columbus city officials say they will
welcome Uber and Lyft, two new ride-sharing services that provide taxi service for hire. The city
is finalizing rules detailing how the companies must operate. Balancing the needs of residents with
the concerns of existing taxi companies, officials are developing some common-sense regulations for
these startups that should allow all parties to coexist, as they do in other cities. The
regulations being looked at are, in fact, similar to ones that have been adopted in California.

These services are changing the way people get cab service around the country. Those who need a
ride order it and pay for it by credit card using a smartphone app and receive a receipt
electronically. Drivers use their personal cars rather than specially outfitted taxi cabs.
Customers and drivers are asked to rate each other afterward, which is a self-policing mechanism
designed to weed out bad apples.

They join other new transportation options that have come to Columbus in the past year or so.
Things like the Car2Go Smart car-sharing service, which has quickly expanded to about 250 cars, and
the CoGo bike-rental service are signs that Columbus’ urban core is reaching a critical mass. They
soon will be joined by a new Downtown circulator bus from the Central Ohio Transit Authority.

As is usually the case when a new business model is introduced, those operating under the old
business model protest. They say the new services don’t have to operate under the same restrictions
as they do, and argue that they might not be safe. But requiring some key items that city officials
are considering, such as requiring city licenses for drivers and stipulating that companies
maintain at least $1 million in commercial liability insurance, should address such concerns.

Fair, common-sense oversight of these services is in the best interests of Columbus residents.
As in other cities where the services have become popular, people are eager to try them and
generally give them good reviews for providing efficient and friendly service at a competitive
price.

“Obviously, they wouldn’t come to Columbus if people didn’t want it,” said Amanda Ford,
spokeswoman for the Columbus Department of Public Safety, in an interview with
The Dispatch about Uber and Lyft. The department is working on proposed rules that would
require drivers to be licensed by the city. Along with licensing and insurance requirements, the
rules would prohibit drivers from soliciting customers on the street.

When the rules are finished, they will be subject to a vote by Columbus City Council. The safety
department says it expedited the process for developing regulations in recognition of the fact that
Uber and Lyft already have launched their smartphone apps here and because of taxi company concerns
about facing unregulated competitors.

Innovation creates great opportunities for startup businesses and benefits to consumers. But
change can also mean discomfort for companies facing new competition. Columbus is taking the right
steps to arrive at the best outcome for all.